Essentials of Marketing Research 6th Edition Babin Test Bank 1

Essentials of Marketing Research
6th Edition Babin
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isbn-1305263472-9781305263475/
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Chapter 6—Secondary Data Research in a Digital Age
TRUE/FALSE
1. Secondary data are data that have already been collected for some other purpose than the one at hand.
ANS: T REF: Using Secondary Data in Marketing Research

NAT: BUSPROG: Analytic
2. The use of secondary data requires current access to respondents who provided the data.
ANS: F
Secondary data are historical and already assembled, requiring no additional access to research
respondents or subjects.
REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic
3. The primary advantage of secondary data is their validity.
ANS: F
The primary advantage is their availability.
4. It is always possible to gather the primary data needed for a research project.
ANS: F
Sometimes the required information is not accessible to a private firm (i.e., taxes paid).
5. A disadvantage to secondary data is that they were not designed specifically to meet the objectives of
the current project.

6. A disadvantage of secondary data is that the current researcher has no control over the accuracy of the
data.

7. One disadvantage of secondary data is that rescaling and other transformations are not possible.
ANS: F
Data transformation is the process of changing the original form of data to a format more suitable for
achieving a stated research objective.
8. A researcher should always evaluate the professional reputation of the organization that has gathered
secondary data in the process of evaluating the quality of the data.

9. Cross-checking data can help determine the similarity of independent projects.
ANS: F
Cross-checking compares data from one source with data from another source; when the data are not
consistent, researchers should attempt to identify reasons for the differences or to determine which
data are most likely to be correct.
10. Fact-finding is the most complicated form of secondary data analysis.
ANS: F
This is the simplest form of secondary-data research.
REF: Typical Objectives for Secondary-Data Research Designs NAT: BUSPROG: Analytic
11. Market tracking is the observation and analysis of trends in industry volume and brand share over
time.
ANS: T REF: Typical Objectives for Secondary-Data Research Designs

12. Model building is the simplest form of secondary data analysis.

ANS: F
Model building involves specifying relationships between two or more variables, which is more
complex than simple fact-finding.
13. Market potential is frequently estimated through the use of secondary data.

14. Marketing researchers frequently use internal accounting data to generate sales forecasts.

15. A moving average sales forecast works best in a dynamic competitive environment.
ANS: F
This technique is best suited to a static competitive environment.
16. The index of retail saturation is the ratio of moving average projection to local market potential
(demand).
ANS: F
The index of retail saturation is the ratio of local market potential (demand) to local market retailing
space.
17. Data mining techniques can help to define the underlying meaning of data.

NAT: BUSPROG: Analytic | BUSPROG: Technology
18. Schematic networks are a form of artificial intelligence in which a computer is programmed to mimic
the way that human brains process information.
ANS: F
Neural networks are a form of artificial intelligence in which a computer is programmed to mimic the
way that human brains process information.
REF: Typical Objectives for Secondary-Data Research Designs

19. Customer discovery is a form of data mining that analyzes anonymous point-of-sale transactions
databases to identify coinciding purchases or relationships between products purchased and other retail
shopping information.
ANS: F
Market-basket analysis is a form of data mining that analyzes anonymous point-of-sale transactions
databases to identify coinciding purchases or relationships between products purchased and other retail
shopping information.

20. By definition, secondary data are always data that are external to the organization.
ANS: F
Internal sources of secondary data include sales information, call reports, customer complaints, and so
on.
REF: Sources of Internal Secondary Data NAT: BUSPROG: Analytic
21. Secondary data can be bought and sold like other products.
ANS: T REF: External Secondary Data Sources

22. Trade associations gather data to help the organizations in a specific industry.

23. Diary panel data are data gathered by households that have agreed to record their consumption
behavior over an extended period of time.

24. The marketing research industry uses the term primary-source data for diverse types of data offered by
one particular company.
ANS: F
Single-source data is diverse types of data offered by a single company.
REF: Single-Source Global Research in the Big Data Era NAT: BUSPROG: Analytic
25. Financial data from different countries tend to be the same due to standardization of accounting and
recording practices for economic concepts.
ANS: F
Although economic terminology may be standardized, various countries use different definitions and
accounting and recording practices for many economic concepts.
MULTIPLE CHOICE
1. Obtaining secondary data is typically ____ and ____ expensive than obtaining primary data.
a. faster; more
b. slower; more
c. faster; less
d. slower; less
ANS: C REF: Using Secondary Data in Marketing Research
2. A researcher who is interested in new car sales discovers that the secondary data are in the form of
statistics that include both car and light truck sales combined. What criterion have the data failed to
meet?
a. The data should be in the correct unit of measurement.
b. The data should apply to the time period of interest.
c. The data should be supplied by a reputable source.
d. The data should show evidence of reliability and validity.
ANS: A REF: Using Secondary Data in Marketing Research
3. All of the following are common reasons why secondary data do not adequately satisfy research needs
EXCEPT ____.
a. outdated information
b. too expensive
c. variation in definition of terms
d. different units of measurement
ANS: B REF: Using Secondary Data in Marketing Research
4. Shawn is interested in average monthly sales for automobiles in Memphis, TN. He found information
on the Internet that gives annual automobile sales by cities, so he took the annual sales for Memphis
and divided it by twelve to get a monthly average for that city. This is an example of ____.
a. data mining
b. data division
c. data transformation
d. data validation
ANS: C REF: Using Secondary Data in Marketing Research
5. One disadvantage of secondary data is that ____.

a. the user has no control over their reliability and validity
b. the data cannot be converted
c. it typically requires additional access to research respondents
d. it takes more time to collect than primary data
ANS: A REF: Using Secondary Data in Marketing Research
6. When a researcher compares secondary data from one source with data from another source, the
researcher is doing a(n) ____.
a. data transformation
b. cross-check
c. data mining
d. data enhancement
ANS: B REF: Using Secondary Data in Marketing Research
7. Data purchased from a company such as NPD Group, Inc. on the consumption of frozen pizza in the
U.S. is most likely going to be used for ____.
a. model building
b. database marketing
c. data mining
d. fact-finding
ANS: D REF: Typical Objectives for Secondary-Data Research Designs
8. Tracking monthly sales trends over the past year is best described as an example of ____.
a. model building
b. fact-finding
c. database marketing
d. environmental scanning
ANS: B REF: Typical Objectives for Secondary-Data Research Designs
9. The observation and analysis of trends in industry volume and brand share over time is called ____.
a. market tracking
b. model building
c. data mining
d. database marketing
ANS: A REF: Typical Objectives for Secondary-Data Research Designs
10. When a marketing manager reads publications like The Wall Street Journal and Business Week to try
to determine changes in consumer behavior, the manager is best described as engaging in ____.
a. environmental scanning
b. model building
d. data mining
11. Lance has noticed that companies that advertise a lot seem to have higher sales than those that do not.
His use of secondary data to help specify this relationship is an example of ____.
a. data transformation
b. validation
c. reliability
d. model building
12. Every year, Westview Marble goes through the process of estimating sales for the upcoming year by
looking at the company’s previous years’ sales and market sales along with economic trends and
predictions by experts. This process of predicting sales totals over a specific time period is called
____.
a. model building
b. trend analysis
c. sales forecasting
d. market potential estimation
ANS: C REF: Typical Objectives for Secondary-Data Research Designs
13. Kyle is conducting a sales forecast by adding up his company’s sales over the past five years and then
dividing that by five (the number of years). The forecasting technique he is using is called ____.
a. moving average forecasting
b. dynamic forecasting
c. static forecasting
d. indexing
14. When Subway Sandwiches uses secondary data to determine the best location for its franchise outlets,
they are engaged in ____.
a. site analysis
b. model building
d. market tracking
15. Which index describes the relationship between retail demand and supply?
a. index of retail sales
b. index of retail utilization
c. index of retail saturation
d. index of retail sites
16. The population of a city is 230,000 and its annual per person expenditure on athletic shoes is $45. If
there are 64,688 square feet of retail space used to sell athletic shoes in this city, its index of retail
saturation is ____.
a. 12.65
b. 79.01
c. 159.99
d. 1437.51
17. Bath and Body Works is a retail chain of bath and home fragrance products. Before entering a new
geographic area, the company develops an index consisting of a ratio of local market potential in
dollars (demand) to local market retailing space in square feet. If this ratio is below a predetermined
level, the site is not considered further. However, if this ratio is greater than that level, further site-
selection analyses are performed. This index is called the ____.
a. index of retailers
b. index of retail utilization
c. index of retail sales
d. index of retail saturation
18. Many companies use powerful computers to dig through volumes of data to discover patterns about
their customers and products. This activity is called data ____.
a. mining
b. snooping
c. surveying
d. discovery
19. A(n) ____ network is a form of artificial intelligence in which a computer is programmed to mimic the
way that people process information.
a. cognitive
b. neural
c. schematic
d. intelligent
ANS: B REF: Typical Objectives for Secondary-Data Research Designs
20. Many retailers mine the databases provided by checkout scanners to identify coinciding purchases or
relationships between products purchased and other retail shopping information. This type of analysis
is referred to as ____.
a. neural networking
b. scandowns
d. market-basket analysis
21. Which activity involves mining data to look for patterns identifying who is likely to be a valuable
customer?
a. customer discovery
b. data dissection
c. data profiling
d. customer cloning
22. A credit card company uses information about each customer's age, gender, income, and past credit
history to find patterns that make customers a poor credit risk. This company is using ____.
a. single-source data
b. data transformation
c. customer discovery
d. index of customer saturation
23. The practice of using databases to promote one-to-one relationships with customers and create
precisely targeted promotions is called ____.
a. zoned marketing
b. target marketing
d. electronic marketing
24. All of the following are examples of internal secondary data EXCEPT:
a. sales invoices
b. U.S. Census data
c. inventory levels
d. back orders
ANS: B REF: Sources of Internal Secondary Data
25. Secondary data that are owned and controlled by the organization are best called ____.
a. first order data
b. proprietary data
c. exclusive data
d. valid data
ANS: B REF: Sources of Internal Secondary Data
26. All of the following are producers of external secondary data EXCEPT ____.
a. libraries
b. trade associations
c. government
d. media
ANS: A REF: External Secondary Data Sources
27. Which type of data cannot be purchased (legally and ethically) from commercial sources?
a. demographic and census updates
b. market-share data
c. consumer attitudes and public opinions
d. proprietary research and development data
ANS: D REF: External Secondary Data Sources
28. Buying new-car purchase data by zip code from the Polk Company is an example of the use of a(n)
____.
a. media source
b. commercial source
c. trade association source
d. primary source
ANS: B REF: External Secondary Data Sources
29. Asking a group of households to record their consumption of certain products over a two-year period
is an example of ____.
a. model building
b. database marketing
c. data transformation
d. diary panel data
ANS: D REF: External Secondary Data Sources
30. Which term is used by the marketing research industry to refer to diverse types of data offered by a
single company?
a. primary data
b. single-source data
c. compound data
d. integrated data
ANS: B REF: Single-Source Global Research in the Big Data Era
COMPLETION
1. Data that were collected previously for a different research study are known as
____________________ data.
ANS: secondary
2. When original data are changed to a different format in order to make them consistent with a research
objective, the data are said to have been ____________________.
ANS: transformed
3. Comparing data from one source with data from other sources to determine the consistency of the data
is known as performing a(n) ____________________.
ANS:
cross-check
cross check
4. Tracking industry unit sales over the past twelve months is a form of ____________________
tracking.
ANS: market
5. Reading The New York Times to study possible changes in consumer consumption patterns of specific
products is an example of ____________________.
ANS: environmental scanning

6. Using secondary data to study relationships between two variables is an example of
____________________.
ANS: model building

7. Predicting next month's dollar sales based on past sales for the previous twelve months is an example
of a(n) ____________________.
ANS: sales forecast

8. The mathematical result of describing the relationship between retail demand and supply for a specific
geographic area for a specific product is known as the index of ____________________.
ANS: retail saturation
9. Techniques that use secondary data to select the best location for a retail or wholesale operation are
called ____________________ techniques.
ANS: site analysis
10. When an organization uses powerful computers to try to discover patterns of customer relationships
for its products, this is known as ____________________.
ANS: data mining

11. Using CRM systems to create one-to-one relationships with customers for specific promotions is an
example of ____________________ marketing.
ANS: database
12. ____________________ analysis is a form of data mining that analyzes anonymous point-of-sale
transaction databases to identify coinciding purchases or relationships between products purchased and
other retail shopping information.
ANS: Market-basket
13. Secondary data owned and controlled by a specific organization are called ____________________
data.
ANS: proprietary
REF: Sources of Internal Secondary Data NAT: BUSPROG: Analytic
14. Data which are created outside of the organization are called ____________________ secondary data.
ANS: external
REF: External Secondary Data Sources NAT: BUSPROG: Analytic
15. Diverse types of data offered by a single company are known as ____________________ data.
ANS:
single-source
single source
ESSAY
1. Discuss the advantages and disadvantages of secondary data.
ANS:
Secondary data are gathered and recorded by someone else prior to (and for purposes other than) the
current project. The primary advantage is their availability. It’s almost always faster and less
expensive than acquiring primary data. Secondary data are essential in instances when data cannot be
obtained using primary data collection procedures, such as obtaining information not accessible to a
private firm (e.g., taxes paid). An inherent disadvantage is that they were not designed specifically to
meet the researchers’ need. The most common reasons for this are that the data are outdated, vary in
definition of terms, use different units of measurement, and lack the information to verify the data’s
accuracy. Another disadvantage is that the user has no control over their reliability and validity.
Research conducted by others may be biased to support the vested interest of the source.
REF: Using Secondary Data in Marketing Research

NAT: BUSPROG: Analytic | BUSPROG: Communication
2. Explain the three broad objectives that can be achieved using secondary data and give an example of
each.
ANS:
Below are three general categories of research objectives that can be achieved using secondary data:
(1) Fact-finding: the simplest form for secondary-data research. It includes identification of
consumer behavior for a product category, trend analysis, and environmental scanning.
(2) Model building: involves specifying relationships between two or more variables, perhaps
extending to the development of descriptive or predictive equations. Examples include estimating
market potential, forecasting sales, data mining, and selecting trade areas and sites.
(3) Database marketing: the practice of using CRM databases to develop one-to-one relationships
and precisely targeted promotional efforts with individual customers. Examples include
enhancing customer databases and developing prospect lists.

3. Identify various internal and proprietary sources of secondary data.
ANS:
Internal and proprietary data is defined as data that originated in the organization, or data created,
recorded, or generated by the organization. Most organizations routinely gather, record, and store
internal data to help them solve future problems. Routine documents such as sales invoices allow
external financial reporting, which in turn can be a source of data for further analysis. Sales
information, customer complaints, service records, and warranty card returns are other examples of
this type of secondary data.
REF: Sources of Internal Secondary Data

4. Provide examples of various external sources of secondary data and discuss how information, as a
product, is distributed.
ANS:
External data are generated or recorded by an entity other than the researcher’s organization.
Traditionally, this information has been in published form, but today computerized data archives and
electronic data interchange make external data as accessible as internal data. Because secondary data
have value, they can be bought and sold like other products, and channels of distribution include (1)
libraries, (2) the Internet, (3) vendors, and (4) producers. Classifying external secondary data by the
nature of the producer of information yields five basic sources: publishers of books and periodical,
government sources, media sources, trade associations, and commercial sources.
REF: External Secondary Data Sources

5. Discuss the additional challenges researchers face when using secondary data compiled outside the
United States.
ANS:
Secondary data compiled outside the U.S. have the same limitations as domestic secondary data.
However, international researchers should watch for certain pitfalls that are frequently associated with
foreign data and cross-cultural research. First, data may simply be unavailable in certain countries.
Second, the accuracy of some data may be called into question. This is especially likely with official
statistics that may be adjusted for the political purposes of foreign governments. Finally, although
economic terminology may be standardized, various countries use different definitions and accounting
and recording practices for many economic concepts.
REF: Single-Source Global Research in the Big Data Era


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Essentials of Marketing Research

6th Edition Babin

Full download at link:

Test bank: https://testbankpack.com/p/test-bank-for-essen-

Solution Manual: https://testbankpack.com/p/solution-man-

ANS: T REF: Using Secondary Data in Marketing Research

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

3. The primary advantage of secondary data is their validity.

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

ANS: T REF: Using Secondary Data in Marketing Research

ANS: T REF: Using Secondary Data in Marketing Research

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

ANS: T REF: Using Secondary Data in Marketing Research

9. Cross-checking data can help determine the similarity of independent projects.

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

10. Fact-finding is the most complicated form of secondary data analysis.

ANS: T REF: Typical Objectives for Secondary-Data Research Designs

12. Model building is the simplest form of secondary data analysis.

ANS: T REF: Typical Objectives for Secondary-Data Research Designs

ANS: T REF: Typical Objectives for Secondary-Data Research Designs

ANS: T REF: Typical Objectives for Secondary-Data Research Designs

REF: Typical Objectives for Secondary-Data Research Designs

REF: Typical Objectives for Secondary-Data Research Designs

REF: Sources of Internal Secondary Data NAT: BUSPROG: Analytic

ANS: T REF: External Secondary Data Sources

ANS: T REF: External Secondary Data Sources

ANS: T REF: External Secondary Data Sources

5. One disadvantage of secondary data is that ____.

REF: Using Secondary Data in Marketing Research NAT: BUSPROG: Analytic

ANS: environmental scanning

ANS: model building

ANS: sales forecast

ANS: retail saturation

ANS: site analysis

ANS: data mining

1. Discuss the advantages and disadvantages of secondary data.

REF: Using Secondary Data in Marketing Research

REF: Typical Objectives for Secondary-Data Research Designs

3. Identify various internal and proprietary sources of secondary data.

REF: Sources of Internal Secondary Data

REF: External Secondary Data Sources

REF: Single-Source Global Research in the Big Data Era

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